Kaine Signs Tax Conformity Legislation

February 22, 2007

On February 19, 2007, Gov. Tim Kaine signed emergency legislation (HB 1696) to conform Virginia's tax code to the Internal Revenue Code by bringing the fixed date of conformity forward to December 31, 2006. The bill is immediately effective.

As in past years, the VSCPA strongly supported the bill and advocated for early passage to decrease conflicts that could have burdened taxpayers and preparers.

The legislation contains exceptions for the special depreciation allowance for certain property provided for under § 168 (k) of the 21 Internal Revenue Code, as well as the carryback of certain net operative losses for five years under § 172 (b) (1) (H) of the Code.